Gobustan Completes Seismic Survey in Azerbaijan

Arawak Energy and its affiliate Gobustan Operating Company, an operating company for the development of the South West Gobustan Exploration Development and Production Sharing Agreement ("EDPSA") is pleased to provide a progress report on its operations in the Azerbaijan Republic.

The Company's new 2D seismic acquisition covering the entire Coastal block, a total survey line length of 385 km which will result in high density data coverage, was completed early in the week beginning March 14th, 2004. Data processing and interpretation is expected to be completed in the early part of the 3rd quarter.

The Company expects that the results of the survey will provide locations for further development or exploration wells to be drilled in the Coastal block during the second part of 2004. It is also expected that workover operations will recommence following the completion of the seismic studies.

Progress on the gas sales contract continues with the next stage of negotiations to commence in mid-April. The Azerbaijan Republic remains a net gas importer and it is expected, subject to contract, that gas from South West Gobustan will be sold on to the domestic market with deliveries commencing within 2004. Subsequent to the successful negotiation of a gas contract, the drilling of additional gas wells is anticipated to commence in the latter part of the year.

The shareholders of Commonwealth Gobustan Limited ("CGL") approved the budget for the 1st half of 2004 amounting to US $5.2 million. The main expenditure in that period will be G&G and seismic studies. Arawak's share of the budget for that period will be approximately US $1.6 million. The full year budget will be approved once the Coastal block seismic data interpretation is available and may also include gas supply related expenditure.

Under the terms of the South West Gobustan EDPSA, SOCAR Oil Affiliate is expected to begin to contribute its 20% share of future cash calls in 2004.

The Company has also made its second sale of oil, by transferring on February 25th, 2004 7,777 barrels of crude oil, by pipeline for onward export via the northern route to the Black Sea loading port of Novorossiysk. The November 2003 export sale to Novorossiysk achieved net average per barrel price of Dated Brent less US $6.00.

The production continues from the first development well, Dashgil 91 and small amounts are also being produced from the Adzhiveli wells in the Central block of the EDPSA.

Gobustan Operating Company Ltd. is the operating subsidiary for the development of the South West Gobustan fields covered under the EDPSA with the State Oil Company of the Azerbaijan Republic, in which Commonwealth Gobustan Limited ("CGL") has an 80% interest, with the remaining 20% held by SOCAR Oil Affiliate. Arawak Energy Corporation owns 37.17% of CGL and the balance is held by China National Petroleum Company ("CNPC") group companies.

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